This is the end of the preview.
Sign up
to
access the rest of the document.

Unformatted text preview: Chapter 2 Thinking Like an Economist MULTIPLE CHOICE 1. Which is the best statement about the way economists study the economy? a. They study the past, but do not try to predict the future. b. They use a probabilistic approach based on correlations between economic events. c. They devise theories, collect data, then analyze the data to test the theories. d. They use controlled experiments much the same way a biologist or physicist does. ANSWER: c. They devise theories, collect data, then analyze the data to test the theories. TYPE: M SECTION: 1 DIFFICULTY: 2 2. Terms used by an economist would include a. vector spaces and axioms. b. torts and venues. c. ego and cognitive dissonance. d. comparative advantage and elasticity. ANSWER: d. comparative advantage and elasticity. TYPE: M SECTION: 1 DIFFICULTY: 2 3. By scientific method we mean a. the use of modern electronic testing equipment to understand the world. b. the dispassionate development and testing of theories about how the world works. c. the use of controlled experiments in understanding the way the world works. d. finding evidence to support preconceived theories about how the world works. ANSWER: b. the dispassionate development and testing of theories about how the world works. TYPE: M SECTION: 1 DIFFICULTY: 2 4. Who said, “The whole of science is nothing more than the refinement of everyday thinking.”? a. Isaac Newton b. Albert Einstein c. Sigmund Freud d. Benjamin Franklin ANSWER: b. Albert Einstein TYPE: M SECTION: 1 DIFFICULTY: 1 5. Albert Einstein once made the following observation about science: a. “The whole of science is nothing more than the refinement of everyday thinking.” b. “The whole of science is nothing more than an interesting intellectual exercise.” c. “In order to understand science, one must rely solely on abstraction.” d. “In order to understand science, one must transcend everyday thinking.” ANSWER: a. “The whole of science is nothing more than the refinement of everyday thinking.” TYPE: M SECTION: 1 DIFFICULTY: 2 6. Sir Isaac Newton’s development of the theory of gravity after observing an apple fall from a tree is an example of a. controlled experiments used to develop scientific theories. b. being in the right place at the right time. c. an idea whose time had come. d. the interplay between observation and theory in science. ANSWER: d. the interplay between observation and theory in science....
View
Full Document